Mortgage

Mortgage payment fears amid concerns nearly half a million could be at risk

Nearly half a million people might not be able to pay their mortgage in the next six months, new information says. Troubles debt and people not being able to pay are seen to be worsening because mortgage interest rates have gone up steeply.

The Bank of England made interest rates higher many times between March 2022 and August 2023. Eligible, a smart system banks use to talk about money stuff, says that 670,000 people didn’t pay their mortgage in the last year.




More people are behind on their home payments than before. UK Finance says there’s been a 25 per cent jump to 93,680 people who owe money, the Express reports.

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Zahra Hassan, who helped start Eligible, said: “The fundamental problem is that mortgages are a financial product that customers take out only once every three to five years.” She also said: “This means that they aren’t regularly engaging with their mortgage and aren’t in the loop of what all their options are.”

Lots of people in Britain, about 5.4 million, say paying for their home is making them really worried about money. This is happening when the cost of living and energy bills are going up too.

Eligible thinks not talking enough is a big reason why people might soon have trouble paying for their homes. They found out that 1.3 million people don’t really get what their mortgage means because they don’t talk to the people who lent them the money.

Ms Hassan stated: “In a broader sense, rising interest rates, coupled with increased energy and living costs, heighten vulnerability to default. However, the key factor that pushes someone from financial strain to actual default is their lack of awareness about the array of options that their bank could have offered to temporarily ease their financial burden, particularly on their largest financial obligation their mortgage.”


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